896.51/3–547: Telegram
The Acting Secretary of State to the Embassy in the Philippines
272. Elizalde13 will sign RFC loan agreement at 10 a.m. Thursday, Mar 6. RFC will issue following press release at 2 p.m. Thursday, Washington time:
“The Reconstruction Finance Corporation today announced that an agreement had been signed by the Corporation and the Honorable Joaquín M. Elizalde, Philippine Ambassador to the United States, consummating arrangements for a $25 million loan to the Republic of the Philippines, to mature on January 1, 1952, with interest at two percent per annum. The loan is a part of a credit of $75 million which the Reconstruction Finance Corporation was authorized by Congress, by the Act of August 7, 1946, to extend to the Philippine Government to aid the new Republic to meet its immediate financial requirements during the current period of adjustment to its new status as an independent nation.
The terms and conditions of the loan were determined in accordance with recommendations of the National Advisory Council on International Monetary and Financial Problems, which also approved the amount now requested by the Republic of the Philippines. While the Council recognized that the widespread property damage and dislocation of the Philippine economy resulting from the war made it difficult to determine an appropriate maturity date for the loan, the Council, in the light of such information concerning Philippine resources as was available to it at the time, recommended that the loan mature on January 1, 1952.
Further data and information on Philippine resources will become available in the near future. A Joint Financial Commission established by agreement between President Truman and President Roxas is at the present time engaged in studying various aspects of Philippine financial problems and will submit a report to the President of the United States and the President of the Philippines.”
Above release approved by NAC and Elizalde. Essential that release in Philippines be identical. Method of issuance may be by Emb, by Phil Govt, or by Emb and Phil Govt jointly, whichever is agreeable to Emb and Phil Govt. Release should be timed to permit publication in Friday morning papers in Philippines.
- Joaquín M. Elizalde, Philippine Ambassador.↩